“In 1999, U.S. prosecutors accused Armstrong of cheating Japanese corporate investors by hiding losses. Regulators also sued him and his Princeton, New Jersey-based firm for fraud. A judge later jailed him for contempt after he refused to surrender 102 gold bars, 699 gold coins, rare coins, an ancient bust of Julius Caesar and a computer once stored in his home.
His failure to surrender the assets, which he said he’d given away, led to the longest jailing ever for civil contempt in a federal white-collar case. Armstrong spent seven years in a Manhattan prison that houses drug dealers and terrorists, surviving an attack that left him hospitalized.
Guilty Plea
Armstrong pleaded guilty in 2006 to conspiracy for lying to investors about his trading record and the value of assets he held, and spent five more years in a New Jersey prison camp before being released to his home on March 8. Republic Securities, now a unit of HSBC Holdings Plc, also pleaded guilty, admitting it helped Armstrong swindle clients. It paid $569 million in restitution. Two ex-Republic employees and a former Armstrong worker pleaded guilty as well.
Tancred Schiavoni, a partner at law firm O’Melveny & Myers LLP who was the court-appointed receiver for Armstrong’s firm, said he believes Armstrong kept the gold.
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Armstrong Legal Update September 27th, 2011 Reply to Bloomberg REGARDING MY WASHINGTON APPEAL I found it very interesting that Bloomberg News choose to do a piece on me and as always they REFUSE to ever report my side of anything too busy supporting the Government and of course their clients in New York that pay them big bucks for their screens. The following affidavit was supplied to them with the court records in Washington, but of course they refuse to report anything that would show the government in a bad light or their big clients. I provided the evidence how the SEC director picked the receiver, then left the SEC and became a partner of O’Melveny & Myers. No mention of how the receiver became a director of Goldman Sachs yet still ran Princeton Economics. No mention of Mr. Schiavoni’s email demanding the model or they would shut down the Princeton Economic Institute. No mention that the CFTC lawyer who crafted the allegations was disbarred for falsifying evidence after handling the Sumitomo copper manipulation that did not name any US banks, only Japanese. No word as to how I could be held in contempt AFTER Republic National Bank paid back $606 million or pocketing $400 million yet I was held for the next 7 years when I owed nothing. Bloomberg’s reply, they were not going to “re-litigate” the case. So in other words, no matter what proof you come up with, they will NEVER report the truth when it goes against the Government or their clients! This is what is wrong with the United States. They think the First Amendment gives them the right to print only what favors their friends and misleads the public as usual. I was told in the 1980s to keep the American name for the company worldwide by a Swiss banker because he said only Americans called the markets the way they saw them because we did not care about the dollar while Europeans would never forecast a decline in their own currency for it was a matter of national pride. Well, the American press defends the NY banks and the Government in the same way others are reluctant to say “sell” their own country. As most people know, The Supreme Court handed down a decision Morrison v National Australia Bank that effectively made it clear that the United States had no authority to seize Princeton Economics in any way possible. Of course, the American Press is always pro-Government and will never cast the Government in any questionable light. How our firm can be gathering evidence against organized market manipulations as GATA and others were trying to do and then the Government seized our firm misrepresenting contracts that PURCHASED portfolios as part of a bail out in Japan claiming they were 1 ----------------------- Page 2----------------------- SOLICITATIONS for management and then appoints as a receiver who becomes a board member of one of the very firms we were investigating, confiscates all the evidence we gathered, alters transcripts that Judge Owen publicly had to admit, and then they kept me in prison on contempt refusing to release me at any time even if friends put up the FULL amount of cash they claimed to be looking for, is just uncivilized. Now, one Government employee has come forward SUBMITTING under oath in the Court of Appeals in Washington, DC, an affidavit admitting what every rational person knew stating the Government conceded there was NO sufficient evidence against me or Princeton Economics but they refused to release me unless I pled (see attached). The American press simply refuses to “re-litigate” the case or in other words expose what has been going on in the courts for years. Meanwhile, evidence of what went on at the bank remains SEALED by the court and is not allowed to be released to the public. So much for the truth! Attorneys for HSBC sought and obtained a lifetime gag order to prevent me from EVER releasing evidence to the public to exonerate myself. One such telephone transcript shows how illegal trades were being stuffed into our hedging accounts: (Continued at Link above)